BILL ANALYSIS


                                                        S.B. 1054
                                                      By: Shapiro
                                      Intergovernmental Relations
                                                         04-11-95
                                     Committee Report (Unamended)
BACKGROUND

Under current law, Texas cities have no authority to raise revenue
other than the taxing power granted by law.  This prevents cities
from exploring other methods of raising revenue.  With the
spiraling costs of providing basic services to city residents and
the federal mandates placed on local governments, municipal budgets
cannot fund many other services, such as water, wastewater, and
street improvements.

PURPOSE

As proposed, S.B. 1054 authorizes a municipality to create and add
a fee to the utility bill of a municipality-owned utility system;
requires the fee to be maintained in a separate fund for the
purpose of infrastructure projects.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 402.001, Local Government Code, by adding
Subsections (e) and (f), as follows:

     (e)  Authorizes a municipality, by ordinance, to add a fee to
     the utility bill of a municipality-owned utility system. 
     Provides that the fee may not exceed $3.00 per month, is
     payable at intervals determined by the governing body of the
     municipality, and shall be maintained in a segregated account
     for certain street and capital improvement projects.
     
     (f)  Provides that a municipality is not eligible to impose a
     fee under Subsection (e) of this section if the municipality
     imposes a similar fee by virtue of authority in its charter.
     
     SECTION 2.     Emergency clause.
           Effective date:  90 days after adjournment.